Describe how you would resolve a dispute with a vendor over an invoice discrepancy during a cash flow crunch.
Situational
Gst Compliance
Vendor Negotiation
Cash Flow Management
This question assesses your ability to balance vendor relationships, maintain compliance with Indian tax laws (e.g., GST), and manage financial constraints.
How to answer
- Start by outlining the specific invoice discrepancy and its financial impact
- Explain your process for verifying records using tools like Tally or ERP systems
- Detail your communication strategy with the vendor to resolve the issue
- Describe how you would manage cash flow constraints while maintaining vendor trust
- Highlight any long-term solutions to prevent similar disputes
What not to say
- Focusing only on technical accounting without discussing stakeholder communication
- Ignoring the impact of GST compliance on the resolution
- Suggesting unilateral decisions without vendor collaboration
- Overlooking cash flow implications in your solution
Sample answer
“At a previous role with Infosys, we faced a Rs. 25 lakh discrepancy with a logistics vendor during a cash flow crunch. I cross-verified invoices with delivery challans in our ERP system and identified duplicate entries. By negotiating a revised payment schedule and implementing automated invoice matching workflows, we resolved the issue without damaging the vendor relationship. This reinforced the importance of proactive reconciliation and clear communication.”